No matter the trade, every single professional contractor constantly seeks ways to enhance productivity and efficiency for their business.
In our most recent webinar, CompanyCam’s John Talman welcomed Jim Bradley from Nolan Consulting Group to discuss how to enhance that business efficiency. With experience in various industries, from FedEx and food production to manufacturing and airports, Bradley delivered valuable insight no matter what business you’re involved in.
Going Lean
Waste.
It’s not a word any business owner loves to hear. But it is the word that Jim says is so important when it comes to improving how your company operates from top to bottom.
That’s where another critical word comes into play: Lean.
What Jim describes as “lean methodology” is all about creating more value with fewer resources. It can’t just be a to-do item but rather part of the fabric of your entire business.
“A lot of people like to say they do it, but then it falls off, “Jim explained. “It’s definitely a culture thing. Lean thinking is a way of thinking about creating greater value with less resources. So it’s a culture of continuous improvement.”
It’s a culture of ongoing improvement and experimentation, aiming to streamline operations and bolster productivity.
“A lot of people make a mistake when they hear lean; they think it’s like a cost-cutting initiative,” he says. “Or we’re eliminating jobs or resources. One thing that I drive home with the people that I teach this methodology to is to repurpose the resource because there’s plenty to do within the organization.”
By the Numbers
Why is process improvement important? The proof, according to Jim, is in the numbers.
Here are numbers from actual real-world process improvement that underscore the significant impact it can have on the organization.
One in three improvements you choose to make, say in a given year, will have a meaningful financial impact on your business. That means if you pick three or four projects to tackle in a given year, at least one of those will impact change to your P&L.
Over 50% of business improvements will distinguish your business from others in competitive markets.
One in ten improvements you choose to make in your business yields cost savings, with the average saving initiative contributing around $31,000, compounding over time.
“People will say, hey, we did this, we’re going to see this savings this year,” Jim explained about compounding the cost savings. “Well, you’ve got to realize you’re going to annualize that out over a period of time. So a $31,000 savings over a 10-year period, it’s like $310,000 in savings.”
Implementation Strategies
A clear vision, mission, and values are central to implementing these improvements.
Each of these ensures that all team members are aligned and motivated.
On top of that, communication is vital. Jim noted that a staggering 95% of employees are often unaware of their company’s strategy.
“That’s a big number, that’s huge,” Jim explained. “If they don’t understand the [overall company] strategy, they probably don’t understand the impact of doing continuous improvement or utilizing the technology platform the right way.”
Effective communication bridges this gap, fostering a culture of continuous improvement.
Technology as a Catalyst for Improvement
Jim noted that integrating technology platforms like CompanyCam is crucial in achieving these productivity gains.
Such platforms save time, improve accuracy, and introduce safety nets, ensuring smooth operations.
Bradley emphasizes that 80% of improvement potential resides at the frontline, highlighting the importance of empowering those directly interacting with the processes and customers.
Of course, a big part of the battle is ensuring that your team adopts and uses that technology. Jim says there are vital components to ensuring that’s not a stumbling block.
“It’s consistency and commitment,” Jim said. “Commitment’s the big one here. If you invest in some type of technology and I’ve been there – if you give up on it, they’re going to give up on it. This is where our leadership skills come in.
“Our job is to show them that this will work. I call it the light bulb moment when you see the light bulb go off, and they’re like, ‘Wow, this does make my job easier.’ Change is frustrating to get people bought in. You’ve got to be kind of consistent and persuasive.”
For contractors looking to maximize their potential, diving deep into process improvement and technology adoption is not just a choice — it’s necessary in today’s competitive landscape.
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